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tv   Mad Money  NBC  March 22, 2012 3:00am-4:00am EDT

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thanks for coming to see us. >> thanks. great being with you. tomorrow john rich is going to help us out. also on friday i'm going to have kellie pickler. you guys have a great day. thanks for coming. say bye! -- captionsy vitac -- www.vitac.com to my world. you need to get in the game. firms are going to go out business, and he is nuts! they're nuts. they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you a little money. my job is not just to entertain, but to educate and teach. so call me at 1-800-743-cnbc. is retail investing making a comeback? i got to ponder that on a day like today. averages got pummeled in the morning, rebounding somewhat in the afternoon. the dow closing down 46 points. the s&p sinking only .19%.
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the nasdaq gaining 0.04%. right now i'm seeing a lot of things in this market that remind me of what this business was like when i got into it 30- odd years ago, right about the time when the great bull market began. that was the moment when individuals began to return to the market after many years of thinking it simply wasn't worth it, which, by the way, it wasn't. so what makes me believe individual investors are sneaking back in one by one, coming back to stocks? first, there is some green shoot action happening, maybe a mustard seed. it's ethereal. almost stock sage phil collins- like, as in i can feel it coming in the air tonight, oh lord, but i can't pin it down. it's when your friends stop you at a party and say boy, oh, boy, i have seen a ton of trucks lately on interstate 28, many more than i have seen in the last couple of years. a source in the intracoastal waterway in florida says the number of brand-new yachts has
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exploded like 30 times more than last year. it's when your trainer says he can't get on the darn lot where the panera and the bed & bath, and jim source are. and get a parking spot right in front was a cinch last year. it's when you go to the mall and think nothing of waiting in line, being number 47 to get an opportunity to pay apple $660 for an ipad, any ipad, including the 32 gig black one when i wanted a white one. you know it. i know it. pretty soon everyone will know it. but how does it translate back into the lingo of stocks? back in the early '80s, you made a ton of money following hunches. you like sneakers? you bought nike. shopped at the banana republic, you snapped up some gap. you took a drug for cholesterol, you bought merck. you saw cell phones break out all over, you bought stock in your cell phone provider when there were many independents. that's the way it worked. you made a lot of money. i think it's happening again. let me tell you just today what i saw and how i can tell that the same exact process is going on right now, just starting.
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you can tell because there are stocks that are acting too well after big runs. the reason? there are real people buying them, individuals. and why are they buying them? because they like the product. because they like the experience. i went to a panera the other day, not my usual panera in short hills, one up in connecticut. what do i hear when i'm trying to find a table to sit in, because there aren't any? how about "hey mad money guy, i guess i ought to be buying stock in this place." i hit my lululemon saturday. i saw the stuff flying out the door. i saw a guy saying thank you, thanked me for turning him on to lulu's stock. i can'even find a place to stand up at my chipotle, let alone to eat. the guy hits me on the shoulder and says, yo, man. i guess i should be buying some chipotle. this guy is vying for counter space to eat his burrito. it's happening everywhere. using google, buying google. words with friends, buying some zynga. doubling down that zynga is buying omg pop because they love playing draw something.
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people getting in some kors. paying $5 and change for a triple cappuccino with skim, wet? got to buy starbucks. and of course the ultimate retail stock, apple. how many people thanked me for getting them in that stock at the apple store this weekend? six, seven? that's,one roared. not from hedge funds or mutual funds, but because people like the products. go online @jimcramer. at one time they wanted to know some obscure penny stock. now it's all about hey, okay to buy? okay to keep the lionsgate through the weekend to see how well "the hunger games" does? how about i love monster, but am i too late? now all that said, how about some rules. if you're buying a stock because you love the product, which is acceptable, you are going to make some money, you're going to lose some money, because you're not really investing. if you buy a stock after doing the homework, in other words, you saw a product, liked the product, checked out the company, checked the financials,
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seeing if it has a long history of doing things right, a decent reputation, that's different. i've seen a ton of money lost in outfits like boston chicken and koo koo roo, they didn't know the obvious problems, even as the stores were jammed. and you and i may have been waiting in line. i've never seen an open seat in an airline, but i would never own an airlines stock because the financials are so horrible. so ask yourself -- maybe you like the product, but does the company have any earnings? let's not chance it if they don't. can you handle it if the earnings aren't and the stock goes down, giving you a chance to perhaps buy more, or is it a mistake to buy more? if you don't know the answer, don't buy the stock to begin with. make sure you aren't late. and there is still plenty of room to expand. many individual investors in the '80s and '90s got burned after gap and walmart ran out of room to expand. third, unless you're real lucky, your first buy might be a bad one. that's why you should follow this cardinal rule -- never buy all at once. buy some. the stock goes down, buy more. if it goes up, wait. i know so many people who can't
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deal with being down on a stock after they bought their 50 shares. in the immortal words of those stock wizards in the sos band, take your time, do it right. because alas i don't want you to get your head blown off. bottom line, what you see happening in this country is happening. the economic activity is picking up. your eyes are not lying. just be sure that the stock you buy to place your bet on america is one that is a real company with real prospects and real history, but by all means, buy. by the time everyone else gets their heads out of bonds and stops hiding in treasuries, the move will have happened, and all of those delicious observations would be for naught. i'm going to start with chris in new york. chris? >> caller: boo-yah, jim. >> boo-yah, chief. what's going on? >> caller: jim, i'm in the telecommunications field. and a stock that has been in the news the last couple days, and not with good news, is sprint. i like the price where it's at. obviously a lot of the fundamentals aren't good. what do you think about the stock and obviously the brand has been around for forever. what do you think?
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>> this is a classic case of something you might like. all my friends who have sprint, the telco system, like it. but the common stock, i think it's uninvestable. the other day when there was a bankruptcy scare, even the senior, the junior fixed income securities were bad. this is an example if you look at the financials you will know it doesn't matter how good the service is. what matters is the stock cannot be bought. i want to go to matt in new york right now. matt? >> caller: big boo-yah from huntington, long island. >> huntington, holy cow. i was out there the other day. they got some good home depot out there. >> caller: young investor, just got into the game. love you. my question is about harper's financial. they're exiting the annuity business and a possible individual life or retirement plans. do you think it's a good step in the right direction? >> yes, because the property and casualty business has a solid book value of $36. you can see the stock go much higher. i really like the move. it's a long time in coming, but i applaud it. i think you're going to make more money with hig. matt in massachusetts. matt?
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>> caller: boo-yah from sunny martha's vineyard, jim. how are you? >> i'm real good. how about you? >> caller: good. i was wondering about hp, the combination between printers and computers. how do you feel about that? >> well, you know, i was trying to struggle with being a statesman about that question, kind of a cross between gandhi and bishop tutu. maybe throw some jefferson in. i don't want you to touch that company no matter what they do. that particular move is completely irrelevant. the fact they put a release out is bad. oracle didn't even do well. and they're supposed to be doing well. how would you ever want to own -- merge the printer with the -- wow. i'm trying to avoid using the titanic analogy only because you hear it so often about rearranging the deck chairs. but you know what? if the shoe fits, wear it. i feel it in the air. oh, lord, the retail investor is coming back. i say, buy american but consider earnings, consider time, consider financials. consider if there is any track record. there is plenty of good ideas to make you money that do fit those parameters. "mad money" will be right back.
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>> coming up, open circuit? this tech barometer is found in everything, from the latest darlings to downtrodden devices. cramer is taking the temperature of tech with the ceo of jabil, fresh off earnings. and later shop till you drop? while ma and pop retailers. continue to go by the wayside, a few niche chains are looking dapper. time to get in on big and tall profits at a discount? all coming up on "mad money." >> miss out on some "mad money"? get your "mad money" text alert today. text "mm" to 26221 to get cramer right on your phone. for more info, visit madmoney.cnbc.com, or give us a call at 1-800-743-cnbc. we know a place where tossing and turning
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i come on here tonight in praise for consistency. in the stock game, we love companies that can deliver excellent results quarter after quarter, year after year. sometimes those companies don't get enough credit for being
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consistent. that causes their stocks to be much cheaper than any right they have to be. take jabil circuit, jbl, one of the world's top electronic manufacturing service providers. in plain english, when other companies want to outsource their manufacturing, they go to jabil, which is an expert in assembling everything from simple consumer technology to industrial and networking equipment, to clean technology and medical devices. companies love jabil because it helps them save fortunes on manufacturing costs. and this trend towards more and more outsourcing has allowed jabil to put together an amazingly consistent track record. over the last 12 years this company has delivered 10% compound annual earnings growth and 14% annual growth. none of those competitors compare to those numbers. jabil understands that in order to produce consistent results, you've got to change with the times. for jabil that means focusing less on commodity consumer electronics and moving more heavily into what they call diversified manufacturing services, where jabil assembles industrial and clean tech market. as well as helping customers
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develop better products and get them to market faster. that's exactly what we saw when jabil reported last night, beating the earnings estimates by a penny and delivering a stronger than expected revenue number by 7.8% year-over-year. even though the rest of jabil's business has slowed down, their diversified manufacturing segment grew at a staggering clip. right now it accounts for 44% of the company's sales. it's expanding so rapidly it will soon make up half of the business. the stock up 32% year to date. so it's no surprise took a little breather today, falling 32 cents, up 1.2%. don't take the decline was a judgment that the quarter was disappointing because it wasn't. the quarter was good. jabil's give you an 80% staggering return since they got behind it in july of 2010. it's up 37% since we last spoke with the ceo in late september. so let's check in with tim main, the terrific ceo of jabil circuit, find out more about the quarter and his company's prospects. mr. main, welcome back to "mad money." >> thanks, jim.
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i appreciate that. >> all right. first i'm trying to figure out we have a down economy or a slow economy. everybody is worried worldwide. but your numbers, even for cyclical businesses, just continue to be great. so what are people -- why do they not understand that you do not correlate with a down or flat gdp? >> well, look, particularly in the developed world in the areas like north america and europe, all of the major oems for years and decades have relied on those markets alone to fuel their growth, now need to access global markets, markets in asia, latin america, and elsewhere in the world. and we help them get there. we help them tap emerging growth markets. we help them develop products for those markets. we help them localize supply chains for those markets. and we help make their companies more efficient in the way they deliver those products to market, even in the developed areas of the world. so we specialize in global supply chain architecture and management. we simplify the complexity of doing business in a global marketplace. that's where the world has gone. that's where we are.
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and that's why we can grow. >> all right. i obviously have been behind the stock for a long time. you get third quarter guidance. i've got to be sure i'm not off, i'm not too aggressive here in being positive. it's diversified manufacturing estimated to increase 25% year to date. enterprise and infrastructure, which to me seems very important estimated decline 8% year-over-year. i used to look at you guys as the premier high velocity player. down 14% year over year. could someone look at this and say maybe these guys are in two businesses that are in a secular decline? >> i wouldn't say they're in a secular decline. i think there is particular issues with each one. but i would characterize these as traditional ems markets. and taking enterprise infrastructure for example, jim, that will be up sequentially down on a year-over-year basis. and think about where we have been in the last year. so about a year ago, we had the european debt crisis, sovereign debt crisis. the u.s. shot itself in the foot with its own political issues in the summertime.
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there were inventory issues near the close of the year. government spending has been down because of fiscal constraints. so e&i has been pretty choppy waters overall. i think contextually, given that underinvestment in infrastructure, you have the t-mobile, at&t, verizon underinvestment, underinvestors, carriers in europe. i think we're going to start to see more momentum in the enterprise and infrastructure spend as calendar '12 unfolds even into fiscal year '13. our share of wallet, our service, customer satisfaction in that marketplace is very, very solid. so we have some particular issues. we want to replenish the margin structure in that area to a higher level. and high velocity, look, it's really everything except a smartphone customer in that area has done extraordinarily well. and margins in that business have been strong. so i think that's a testament to
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the guys in my company that really run the operations around the world to drive efficiencies, lean manufacturing, and be world class in the way we make things to drive profitability in the face of some pretty significant revenue headwinds. >> right. that's what i felt. is gees, if you can do that much things are where they are, who knows. one of the reasons people like the stock, who knows what will happen when things get stronger. now another area i'm concerned about, a high-quality problem this time, in your 10q, you had agilent, cisco, ericsson, international business machine, research in motion, but also apple. is there anyone in that pastiche that can hurt you so much that we would see a decline? and is there anyone in that pastiche that you are so beholden to that they could cut you off and hurt you? >> well, i mean, i can't say no to every question. there are factors in the 10 k. but look, this is why diversification has been
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important to our company. after the tech wreck in 2001-2002, we said look, we love our customers. you never get rid of a customer. you have to service them through thick and thin. and once you have the customers in our business, it's a service business, you have to continue to service them. so we're not going to take sides in these decisions around customers. but we can protect ourselves and protect our investors with diversification -- health care, industrial, our materials technology group, different ways to access growth around the world, different services we can offer so that if there are volatility with any particular customer or segment, then we can protect our company and our investor base from that. and i think that's really what we rely on to protect ourselves from any bad name that investor might pick out of our top customers. >> as our viewers know, some of those companies are not doing that well and might say well, i'm scared to buy jabil, and they shouldn't because of this tapestry that you talked about. one of the areas i'm totally
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immersed in is the fact that we have oil at $120. on your slide presentation, you have energy efficiency, energy generation, energy infrastructure. is this something that could be say, three, four times the size of what it is now, three years from now, if the oil stays high? >> yeah, i'm telling you, our clean tech energy area of businesses have grown significantly over the last three, four years. they are very strong macroeconomic tailwinds to that business. you can see from our slide where the customer base, the types of leading companies that we do business with. i think, you know, oil is whether you're drill baby drill or you're an efficiency person, wherever you stand in that spectrum, fact of life, it's a limited resource. the world is turning to a variety of different areas of energy, energy management, energy efficiency. we're right at ground zero
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there, dealing with some leading companies. and i'm personally very excited about our participation in that marketplace. >> yeah, i think that's a great one. tim main, once again, just a fabulous quarter. thank you so much for delivering for your shareholders. >> thanks, jim. appreciate that. >> that's tim main, president and ceo of jabil circuit. probably some say jeez, research in motion, i'm scared about that. you don't need to be scared. some say perhaps too much concentration in apple which is in the quarterly reports. no. you heard about the fantastic mosaic of business. that's why jabil could be a great story for 2012. stay with tim main, president and ceo of jabil. stay with cramer. >> coming up, shop until you drop? while mom and pop retailers continue to go by the wayside, a few niche chains are looking dapper. time to get in on big and tall profits at a discount? and needs a different product. with so many choices, it always feels like you're just playing the odds. [ dinging ] take the gamble out of stain removal. introducing resolve all-stains!
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you should always keep at least one eye out for new investment ideas, even when you aren't trying to pick stocks, because let me tell you, your best ideas are not going to come to you while you're reading the business section of the newspaper, if only because just about every other investor is looking at the exact same articles as you are and probably having very similar thoughts. no. if you're looking for inspiration, you've got to go beyond the business section. let me give you an example. last month i read an article in "the new york times," the metro section of all places, about the great men's clothing stores of
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yore and how they're being wiped off the face of the earth. they listed all of the family-owned ones in manhattan that have fallen by the wayside over the years. biltmore, bfo, charlie & al's, clothing garage, fr tripler, and from more recent times, mo ginsburg and sims. the once great manhattan destinations for men who were looking for a good suit at a good price. and the story goes on to talk about how rothman's, the last holdout, has had to close down their landmark location and move to a cheaper piece of real estate. you know what i thought when i read all that? there was a part of me that mourned the loss of all these mom and pop operators. i'm a sympathetic character, i bought the tuxedo for my wedding at gorsard and got my first suit at mo ginsburg. i love rothman's. top-notch. i didn't need to be fitted. so we can mourn them, or we can ask ourselves hey, somebody is making these family-run stores
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go under. somebody is talking their business. who is it? because that's a stock i want to own. it may sound callous, but remember, this is not the small business administration. it's "mad money." my job is try to help you make money in the market, not get all teary-eyed about where people buy their suits. and that's why we need to ask who is getting this business? who benefits from the demise of all these ma and pop outfits? the first suspect, men's wearhouse. all right. and by the way, this isn't just happening with suits. we've seen the same thing with women's shoes. five years ago i took my daughter to the dsw at union square in new york city under the guise that we were going to the discount shoe warehouse. that's what she told me. dad, d is for discount. it turns out it's the designer shoe warehouse. when i was growing up, i remember my dad selling all these gift bags to shoe stores, that catered to women, but the big chains wiped them all out. which chains? who?
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exactly who were the destroyers of these family-run businesses? why it's dsw. so while we love the idea of the mom and pop operators around here, we've got to accept the fact that places like men's wearhouse and dsw are where people go when they want luxury at value prices. this is where they shop in the year 2012. these chains are like the costco of men's clothes and the sam's clubs of shoes. they're actually chic to shop at in the case of dsw, and they make you feel like a chump, this current iteration if there are mo ginsburgs or whatever is the equivalent in your town, paying higher for the exact same merchandise. i know there are some kids like cramer out there right now who are looking for the same kinds of values that i once did. and these chains are where they go, as richard in new york pointed out last night when he actually described the excellent quarter of dsw during a call in to "mad money." all right.
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so let's take a closer look at these two. first off, there is no better time to look at men's wearhouse than after i got to spend the morning hanging out with "mad men's" don draper. this morning on squawk on the streak, an actor who people are constantly confusing me with, and who can blame them? that guy is a tremendous dresser, although the 5:00 thing, the 5:00 shadow thing at 9:30 a.m., hard to fathom. men's wearhouse has been taking share and taking names for years. their business is only going to get stronger as they go forward as the employment ticks up and more in the labor force. more guys with jobs equals more guys with suits and ties. at 16% of all domestic menswear clothing store sales. after steadily rising up to an astounding 22%. they control more than a third of the tux market. another figure that is increasingly because of the convenience factor. i love this. you can get fitted for a tux at one men's wearhouse and then pick it up from a different location that is closer to the actual event, the actual wedding. so you don't have to travel with the darn thing. you don't even have to get it
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pressed, take it out of the suit kind of thing. a terrific big and tall business too, although i'm small and short. how about the value proposition? men's wearhouse used to do every day low pricing with two annual clearance events. but two years ago they upped their game. now it's buy one, get one. bogo, the ultimate promotion. their massive scale and market share give them a lot of leverage over their suppliers. the result? men's wearhouse has averaged 7% same store sales and the company has grown at an astounding 48% on average over the last two years, all thanks to the dominance of the menswear market. the company has 1,049 stores in the united states, men's wearhouse and tux and k & g brands as well as another 117 stores in canada under the moore's brand. they're growing the store base, in low single digits. but the real growth should come as they expand their internet offerings. plus, mens wearhouse has two picture themes on its side.
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the pickup in hiring, and a once in a decade change in the fashion cycle toward more tailored suits for men. how about that other slayer, that slayer of mom and pop operations, dsw? the whole idea behind this concept is offering designer shoes at discount prices, which is why they have been taking share like crazy from all of the smaller players all over the country. dsw only has 328 stores. 40 states. they operate 341 leased departments for other retailers across the country. they have a tried and true formula for winning the footwear foot race. and now they're planning to open 35 to 40 locations in 2012. that's an 11.4% increase in the store count, more than almost any other retailer. just yesterday the company reported stellar quarter. stronger than expected revenues, 5.6% increase in same store sales. that was against very tough compares. dsw's inventory is clean, guidance solid, and they're seeing strength in both accessories and in the new frontier of men's shoes,
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regions. i swear by them. the bottom line, there is a reason why both men's wearhouse and dsw are within striking distance of their 52-week high. these companies are obliterating mom and pop retailers all over america by offering quality merchandise at low prices. we may lament the loss of family businesses, but let's celebrate the gains these two companies can make for you as they annihilate the competition. i'm starting the calls with brad in california. bradley? >> caller: hey, spring training dodger blue boo-yah greetings to you, jim. >> i'll take that. we don't play you guys until the championship. go ahead. >> caller: it's coming up. it's coming up. hey, i just had a real quick twofold question for you. in regards to macy's, that gigantic beast, being a day trader in and out of that thing, the dips have been fabulous. how do you play that monster at this point? especially in lieu of the news this morning targeting teens?
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and what do you feel that -- >> look, i love a day trader. i think it's terrific. half of my business when i had a hedge fund was to be in and out. but macy's is a great investment. we all recognize that terry lundgren has figured this out. it's terrific. saks doesn't have the growth i want, but it has consistent numbers. inexpensive at 11. these are two investments for me. i'm not a trader of retail stocks. it's too hard anymore. those guys are zipping in and out. it's just too nimble. i like to invest. i want to go to joe in michigan. joe? >> caller: hey, jim, big boo-yah to you, brother. >> right back at you. >> caller: i'd like to know with the rapid growth of ralph lauren overseas, the new dividend they're putting into place, and the fact it has gone up as much as it has, do i still have time to get in? >> yes, that is a monster stock! >> buy, buy, buy. >> they're just beginning to tackle asia, china. ralph lauren is right up there with coach, if not better. i am sure ralph is watching. i know ralph does watch the show. gee, he lumped me with coach. coach isn't a bad company. i do see ralph lauren can see
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200 without much of a problem. i want to go to the cornhusker state. i want to go to jeremy in nebraska. jeremy? >> caller: boo-yah, jim. >> boo-yah. >> caller: my question is regarding select comfort, ticker symbol scss. >> monster, yeah. >> caller: i noticed the stock has run up from low level of $20 a share in december to over $32 a share currently. my question is should i wait for pullback, or is now a time to buy, given the fact that the housing market is starting to come back? >> this and tempur-pedic are terrific housing plays. what can i say? they're both very good companies. they're completely at war with each other. this is not yul brynner versus eli wallach in "magnificent seven." there's room for both. they deal in lead. they're competitors, but everybody can win. i like them both. we mourn the end of the mom and pop era of men's stores, but on "mad money" we focus on who is looking good as a result. and you know who it turns out to be? the usual suspects. stay with cramer.
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coming up, can you handle the heat? cramer gets you fired up for a searing hot "lightning round." plus, how do your stocks stack up in a mystifying market? cramer makes sure your portfolio makes the grade on "am i diversified?" all coming up on "mad money."
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all right, now, before we get going, i got to set the record straight here. last night's off the charts on the vix, aka the fear index, we incorrectly credited, meaning me incorrectly credited the terrific chart work to scott redler when in fact it was from the great mark sebastian. i deeply regret this error. i have to take a moment to apologize, both to mark for not giving credit and to you. i know at twitter @jimcramer you really did, and you liked how the history was told about it. mark believes we could be in for a long period of low volatility and high returns. and that's an argument i find very persuasive. let me give you the right info. mark sebastian is the chief operating officer at optionpit.com, and if you want to learn more about what he's got going and profit from it, check out optionpit.com. he does some real good teaching there. i had to do it. i got to clear that stuff up when i make a mistake. it's time now for the
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"lightning round." say the name -- >> buy, buy, buy! >> sell, sell, sell! >> play until the sound -- [ buzzer ] -- and then the "lightning round" is over. i'm going to start with kyle. kyle in california, kyle? >> caller: yeah, big, big boo-yah from shiny sacramento, california. >> sacramento, back at tenth and p living up those days again at the liquor barn. go ahead. >> caller: wwe, a great yield -- and it's recently expanded -- >> sell, sell, sell! >> it's so yesterday. i read that in "word up" magazine. i really feel stronly you not be in that stock. let's go to johnny in california. >> caller: a czech republic ba-ba-ba-boo-yah to you. >> a czech republic boo-yah, we have real reach. if we get into slovakia, we're gone. what's up? >> caller: your show is like a drug for me. i need my fix every day. what do you think about spectrum pharmaceuticals? sppi? >> oncology treatment? you know i think that is okay to speculate because of the horrible nature of it. if you want to do it, i'm blessing it.
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let's go to howard in arizona. howard? >> caller: hey, boo-yah from scottsdale, arizona. >> so beautiful. >> caller: this company is now part of the apple chain with a free cash flow of five bucks. my stock is chipmos technology, symbol imos. what do you think, jim? >> caller: i have to tell you, when i did my teardown of apple, i did not know how much they have. i have to come back. i cannot just bless it because it has some exposure to apple, because look at what happened to obti. i have to do work and i'll come back. steve in virginia. steve? >> caller: hi, jim. i was hoping to get your opinion on hormel foods. ticker hrl. >> now you're talking. buy, buy, buy! >> a tremendous long-term value to shareholders. how about greg in california, please. greg? >> caller: jimmy, how are you doing, man, boo-yah! >> i'm not doing that well. i've been taking a lot of tums here. it's about time. go ahead. >> caller: hey, man, your show is so hot.
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your show is so hot. if it was a pot roast, it would be done. >> man, i tell you, i feel like i ate a pot roast. any 15 minutes ago. go ahead. >> caller: here is the question. is the force with electronic arts? is the force with electronic arts? >> no. the force is definitely not electronic arts, as much as i would like it to be. the force is with zynga, for i am scrambling with friends every single night before i go to bed. so far i've been dead wrong. i like to own the fact that people shouldn't come to me on ea because i've been so wrong. i've been so wrong. i want to go to mike in tennessee, please. mike? >> caller: hey, cramer, how you doing? >> i'm volunteering, partner, how about you? >> caller: i'm doing good. question, i wanted to hear your thoughts on mosaic. >> i like potash best, and then i like mosaic. and i got to tell you, it's a darn good company. then agrium and cf and then deere. deere has done disappointment after disappointment, even though i have a deere tractor and i love it dearly.
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go, gator! let's go to tony in connecticut. tony? >> caller: jim, thanks for taking my call. teva pharmaceuticals? t-e-v-a. >> caller: no. they can't put it together. there is too much risk. watson pharmaceutical, just buying another drug company. i do not want to touch teva. it has not been a good stock. i don't think it will be. i want to go david in california, please. david? >> caller: boo-yah. what is your insight on esterline tech? esl. >> if you want to own aerospace, and i think you want to own aerospace because you're going there, i'm going to send you to ba, boeing. that is best in show. the stock has been lagging. i think it's only a matter of time before it turns from -- >> the house of pain! >> and that ladies and gentlemen is not the conclusion of the "lightning round," because we've got one more. we're going to go to byron in louisiana. byron? >> caller: hey, jim. thanks for taking my call. >> my pleasure. >> caller: wondering what you thought for a long time on
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jacobs engineer. jec. >> jacobs is not bad. i do prefer flor, but this group is really under distribution right now. meaning people want to get out of it. let's wait a couple of days. why is that? people are worried about oil and gas. jacobs can go lower. and that, ladies and gentlemen, is the conclusion of the "lightning round"! [ buzzer ] >> the "lightning round" is sponsored by td ameritrade. e! whee! whee! wheeeeeeeee! ah heads up. wheeeeeeeeeeee! everything you love about geico, now mobile. download the new geico app today. [ male announcer ] tough on sweat. ♪
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these days remind me of the bull market from the '80s. the retail investors sneaking back in. but it doesn't mean you forget about earnings and the importance of timing.
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fundamentals more important than ever. and that's why we come out here every week and play "am i diversified?" to learn about the sectors that stocks are in. this is where you call me and tell me your top five holdings and i tell you if your portfolio is diversified enough. let's start with john in arkansas. john, you're our first caller. what do you have for me? >> caller: boo-yah, jim, from northwest arkansas. >> beautiful. been there, love it. what's up? >> caller: it's an honor to talk with you, sir. i'm a 23-year-old investor who has watched your show from the beginning. i've read all your books. i just love watching your show every day. >> you are terrific. you are terrific. follow me at twitter and jim cramer, all that stuff. go ahead. >> caller: i love it. yeah, yeah, yeah. i'm investing for early retirement. i want to know if my roth ira is ready for retirement. >> 23-year-old guy investing. can you get better than this? let's have the names. >> first stop, pm, philip morris. >> smoke show.
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>> caller: duk, duk, sbux, starbucks, intc, intel, and lly, eli lilly. jim, am i diversified? >> man, 23-year-old's got game. starbucks, howard schultz, what a great growth stock. duke energy, nice yield. intel, nice yield. and eli lilly superb yield. we've got tobacco, utility, we've got restaurant, we've got tech, and we have drug. i say that man from northwest arkansas knows how to play the game. >> hallelujah! >> now linda in south carolina. linda? >> caller: yes, jim, hi. boo-yah to you. i've been watching you for years. >> thank you. >> caller: the stocks i have, at&t, verizon, ibm, pfizer and xerox. i want to know if we're diversified, and i want to know if you would recommend if we purchase aa, alcoa, duk, duke, or glw, corning. >> wow, got a lot on my plate here. that's okay. my plate has runneth over from lunch. ibm, great technology stock. pfizer, terrific yield there.
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xerox, not that crazy about it. but we have information technology, information technology. we have to make a change there. take out xerox, get rid of that and we're going to insert, let's see, how about we buy some tjx? we get a little retail action in there. now, here is another problem. we have at&t and verizon. my charitable trust owns at&t. we can't own both of these. we're going to exit verizon and put in, you wanted to do corning. i can't bless that. i'm not crazy about them. instead, we need oil and gas. so let's pick up some conoco ahead of when they split. and then you will be diversified and still have better yield than what you just mentioned. >> hallelujah! >> no, a little less because we're taking away verizon. let's go to nick in michigan. nick? >> caller: boo-yah, mr. cramer. >> boo-yah to you. >> caller: i hope i'm faring better in my diversified portfolio than i am my brackets for the ncaa tournament. but anyway, here we go. >> okay.
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my commissioner from my bracket is here. i've frantically been trying to update my brackets. he won't let me go in now as i wanted to take out duke. okay. go ahead. >> caller: yeah, i know. >> the whole country wants to take out duke. can you imagine? the whole country wants to take out one thing. we should get a do-over that duke game. even though i like lehigh. i remember when they were the engineers. off topic. go ahead. >> caller: i know, i know. okay, mr. cramer, i am playing with the house's money on this one. but the first is ibm. >> okay. >> caller: the second is abbott labs. the third is deere, john deere. >> right. i know them, very well. it's like john carter, except for better. >> caller: yeah. dupont. >> yep. >> caller: and i added one back in january, cliffs natural resources. >> my head writer is named cliff mason.
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that's enough of a reason. let's go over the group. john deere doing well, ibm, technology stock that goes higher and higher. remember 15 and 15. dupont, charitable action alerts. as is abbott. nice yield. that company is doing well. we have iron, chemical, drug, we have pharmaceutical and we have tech. bingo! and we're not done yet. we're going to john in my home state of pennsylvania. john? >> caller: yo, reverend jim, go yankees, baby. >> you're from pennsylvania. you have a problem with google maps or something? >> caller: never. >> okay. >> caller: here are my five stocks. tell me what you think. bac, cop, i got cvf. i've got hts and msft. >> lucky strike means fine tobacco. okay. you've got the stock symbol way to play the game. hatteras financials, a financial -- a financial reit. i'm not crazy about it.
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annaly is doing fine. conoco is oil. microsoft is tech. cvs/caremark and bank of america of financial. we have a financial, a drug retailer, we have a tech, we've got an oil and a financial. we've got two financials. uh-oh. take that one out. take that one out and let's add, mmm, abbott labs. and stay with cramer! >> hallelujah! 2:30 in the afternoon, a lot to do, and you've hit the wall. but you got to get stuff done. so take 5-hour energy. just open it up, knock it back, and roll up your sleeves. 5-hour energy is faster and easier than coffee. man, does it work. you'll get that alert, energized feeling you need to get stuff done. a lot of stuff. wow. look at you go. 5-hour energy. when you gotta get stuff done. with tresemmé's new split remedy line. three uses repairs up to eighty percent of split ends.
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♪ the times they are a changing ♪ we have a big change going on right now in this country, one that makes it feel like another era, the era when america was ascendent and the capital and the smarts for
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markets to go international. three months ago the company was negatively joined at the hip to europe. our financials were their financials, except our banks had to play with one hand tied behind their back because of heavy-handed regulation. now our banks are the ones that can take advantage of the near collapse of the european financial system. the fact that our banks are sitting on tons of capital while their banks have a drastic lack of capital means that we'll get the business, not them. a stronger dollar will lead to mergers and acquisitions. and that could be one more reason why besides the new buybacks bringing an end to the delusion and the dividend boost why this is so buoyant. i want you to walk jpmorgan and goldman sachs. to monitor this nation trend. for years i found out about our machinery companies and manufacturing enterprises were playing second fiddle to the japanese. i hated seeing komatsu instead of caterpillar. japanese has been pushed aside, mostly by american industrial and technological might, but also financial. how about aerospace? here is the industry we seem to have ceded to the europeans.
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problem with the new dreamliner. boeing is back. we'll see all that come to pass at the paris air show in july. then the ultimate apotheosis of america, and it's the takeback of the oil and gas industry. here is a business that is again reminiscent of the days of spindle top. last up don sinclair on the show, ceo of western gas, this company has pipelines in places where i didn't even know we had oil, or natural gas. we may have trillions of cubic feet of the invisible stuff along with billions of billions of barrels of sweet crude in places i haven't even heard of. because of the opec umbrella, we can spend enough money to develop our resources. we can put an end to our nation's independence on foreign energy much like brazil did with ethanol in the '80s. right now we simply lack the political of wall as washington is obsessed with trying to get energies to go solar. where it can easily switch diesel burning trucks to natural that's okay.
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the marketplace will do it in the end. overwhelming the small thinkers in the federal government, allowing us to have cheaper, cleaner, and most importantly american-made fuel. memo to washington, this is indeed a bob dylan moment, meaning come senators, congressmen, please heed the call. don't stand in the doorway. don't block up the hall. because indeed, the times are a changing. our banks, or machinery companies, our aerospace firms and most of all our oil and gas industry is as i like to say a usa on moment. we're just so gloomy, we don't even know it. or at least the sellers on the sidelines don't know it. that will change over time. consider yourselves still early if you agree with me. stick with cramer. uhh!
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you've got questions -- >> investors don't seem to know what to do. >> i don't know what to do. >> good i do. you have come to the right guy. >> jim has the right answer ans. "mad money." demystifying the market. i always say you got to

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